Asked by Fantasia Jessie on Jun 11, 2024
Verified
In Heitsman v. Canadian Premier Life Insurance Co., an insurance company denied coverage on the basis of an ambiguous exclusion of liability clause. What did the Court find?
A) The contra proferentum rule was applied, and the exclusion was narrowly interpreted.
B) The contra proferentum rule was applied, and the exclusion was broadly construed.
C) The contra proferentum rule was applied, so the interpretation favoured the insurance company.
D) The contra proferentum rule did not apply, because the insurance contract was in standard form.
E) The contra proferentum rule did not apply, because the insured had signed the contract voluntarily.
Contra Proferentum Rule
A rule of interpretation; ambiguous provisions in a written contract are to be construed against the party that drafted the agreement.
Exclusion of Liability
Clauses in a contractual agreement that seek to limit or eliminate legal responsibility for certain acts or omissions.
Ambiguous
Describes something that can be understood in more than one way or that is unclear, often leading to confusion or misinterpretation.
- Recognize the principles governing insurance contracts, the collection of claims, and the interpretation of ambiguous clauses in favor of the insured.
Verified Answer
Learning Objectives
- Recognize the principles governing insurance contracts, the collection of claims, and the interpretation of ambiguous clauses in favor of the insured.
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